Deep Yellow is on track to start production at the Tumas Project in the second half of 2026, subject to the overriding factor of sufficient uranium term price incentivisation.
The Tumas Project, under licence 237 and 100% owned by Deep Yellow, will be Namibia’s fourth uranium mine after Rossing, Husab, and Langer Heinrich.
Deep Yellow will announce the Tumas Project’s final investment decision this month.
The overall project schedule is also being refined and optimised as part of FID preparation.
The announcement was deferred from the end of December 2024 due to delayed costings and quotes for equipment, construction, and further project optimisation.
According to Deep Yellow’s half-year financial report, the final investment decision will also consider whether the price of uranium has risen sufficiently to incentivise the development of a greenfield project.
Tumas Project’s total measured, indicated, and inferred mineral resource now stands at 118.2 Mlb, grading 255 ppm eU3O8.
A measured mineral resource for the Tumas 1, 2, and 3 deposits of 38.5 Mlb at 278 ppm eU3O8 was estimated following an infill drilling program in September 2024.
The aim was to define an additional 20 Mlb U3O8 in measured resources, which can be converted to a proven ore reserve and be sufficient for the first 6 years of production.
Following the updated mineral resource in December 2024, the proven and probable ore reserves increased by 18% to 79.5 Mlb U3O8 at 298 ppm using a 100 ppm U3O8 cut-off, sufficient for 30 years of life of mine (LOM).
The aim was to define an additional 20 Mlb U3O8 in measured resources, which can be converted to a proven ore reserve and is sufficient for the first six years of production.
Deep Yellow says significant potential exists to further increase LOM by upgrading the remaining inferred mineral resources—approximately 30% of the highly prospective Tumas palaeochannel system remains adequately tested.
The pit production and process feed schedule developed for the updated ore reserve estimate commences the mining ramp-up six months before process plant ore commissioning, providing for an annual production rate of 3.6 Mlb in the early phase of the project.
Over the 30-year LOM, at an average head grade of 298 ppm U3O8, an average production of approximately 2.46 Mlb pa U3O8 is estimated.
Firm volume and price offers received from NamWater and NamPower and accepted for the supply of water and power, respectively, are at, or lower than, those assumed for the definitive feasibility study.
